PI Industries’ stock fell by 7.25% in early trading to ₹4,123.90, despite reporting strong Q2 FY25 results, which highlighted a 5.8% increase in net profit and expanded EBITDA margins. The decline in share price is attributed to concerns over muted growth in the pharma segment, leading analysts to lower the company’s FY25 revenue growth estimates.
Key Financial Highlights for Q2 FY25:
- Revenue from Operations: ₹2,221 crore, up 4.9% YoY from ₹2,116.9 crore.
- Net Profit: ₹508.2 crore, marking a 5.8% YoY increase.
- EBITDA: ₹628.2 crore, a 13.9% YoY growth.
- EBITDA Margin: Expanded to 28.3%, up from 26.1% YoY.
Strategic Developments
In line with its growth strategy, PI Industries acquired UK-based Plant Health Care Plc (PHC) in June 2024 for £32.8 million, aimed at strengthening its plant health solutions portfolio and broadening its international presence.
Despite PI Industries’ robust Q2 financial performance and strategic moves, the weaker outlook for its pharma segment has prompted a reassessment of future growth prospects. This has put downward pressure on the stock as investors weigh the impact of the tempered growth expectations for FY25.
